This crisis has broken a lot of economic taboos, with central banks buying up assets and expanding their balance sheets in a desperate effort to reflate a debt-laden private sector. The goal is to maintain economic growth, even at the risk of releveraging within the private sector to make up for a loss of private income-based demand. I think things can go a lot further.
For the time being, ideas like debt forgiveness and fostering increased savings rates to reduce private sector debt burdens a...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.